Q12023: The 20 Most Profitable Companies in the World

The survival and development of a company are based on profitability as the primary condition. There are two important indicators to understand profitability.

The first is gross margin.

Gross margin is a direct reflection of the relationship between a company's selling price and its cost of sales, and does not take into account other factors that may affect profitability, so this indicator is a more intuitive reflection of the competitiveness of the company's products.

The second one is EBITDA.

EBIT is used to measure the profitability of a company's main business, while EBITDA is used to measure the ability of a company to generate cash flow from its main business. More and more investors are focusing on EBIT and EBITDA instead of net income because it is simply a measure of net income, while EBITDA is more reflective of a company's profitability because it includes income taxes, interest, and depreciation and amortization expenses.

Due to the product attributes of the different industries, the most profitable industries in terms of EBITDA alone are energy and real estate. Therefore, here are the 20 most profitable companies over 10B according to GICS.

Consumer Discretionary

$MGM Resorts International(MGM)$ $McDonald's(MCD)$ $Booking Holdings(BKNG)$ $Yum(YUM)$ $Caesars Entertainment(CZR)$

Communication Services

$Charter(CHTR)$ $T-Mobile US(TMUS)$ $Verizon(VZ)$ $Sirius XM(SIRI)$ $Alphabet(GOOGL)$

Information Technology

$VeriSign(VRSN)$ $Broadcom(AVGO)$ $GEN DIGITAL INC(GEN)$ $ASML Holding NV(ASML)$ $Analog Devices(ADI)$

As an investor, what are the most important metrics you look for in a company's financial condition?

what metrics do you look at when evaluating how profitable a company is?

How do you determine whether a company is profitable or has the potential to be profitable?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • SR050321
    ·2023-04-04
    TOP

    $Caesars Entertainment(CZR)$ the pnl negative as show in $Tiger Brokers(TIGR)$ apps, so why is it the most profitable in the world 😱 how i see the company is profitable? i check tiger apps and also compare peer to peer. The apps also provide trendline and foreard PE, is all generated by AI ? 😱 

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  • Kaixiang
    ·2023-04-04
    TOP
    选择基本面强劲的公司是确保投资之旅长期成功的必要条件。我看到的一些指标包括:
    1.收入-过去5-10年的收入持续增长
    2.净收入——必须盈利并持续增长
    3.经营现金流-必须产生正现金流,以便为增长和股票回购或股息分配进行再投资
    4.负债权益比率-资产负债表上的低比率表明对债务的依赖较少,这在高利息或衰退环境中可能是有风险的。
    有几种评估盈利能力的方法,包括:
    1.毛利率-按收入减销货成本(COGS)厘定。这是一个公司如何为其产品或服务/经济护城河定价的指标
    2.净利润率-按收入减销货成本及税项厘定。这显示了财务管理水平和利润的健康程度。
    很高兴听到你的方法![咧嘴笑]
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  • Shyon
    ·2023-04-05
    TOP
    I am not very pro but i usually look into the basic criteria which can be a good reference for beginner.

    1. Revenue growth
    2. Gross margin changes
    3. Net profit growth
    4. EPS

    And oftenly it's good to refer to the company prospect or incoming forecast / estimation to foresee the growth.

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    • ShyonReplying tojethro
      Thanks for looking into this!
      2023-04-10
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    • jethro
      thanks for sharing
      2023-04-10
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    • Universe宇宙Replying toShyon
      [ShakeHands] [Like]
      2023-04-05
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  • SirBahamut
    ·2023-04-04
    TOP
    Normally i will see the GPM, OPM, ROE, FCF yield and revenue growth to determined the PE multiple I am willing to pay per EPS. For balance sheet, i will see the net debt and leverage ratio, and maybe the cash conversion cycle. Nowadays for semi i pay attention to days of inventory as well, since inventory becomes so bloated
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    • jazzyco
      it is a little hard for me to fully understand next move of market according to index
      2023-04-05
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    • glitzy
      very resonable choices depending on specific scene
      2023-04-05
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  • 0QH
    ·2023-04-04
    TOP
    I am more of a swing trader. but will still look at EPS and P/E
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    • twiddly
      it is enough to know about general situation i think
      2023-04-05
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    • WernerBilly
      Good strategy. Very useful indicators for swing trading
      2023-04-05
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  • Ericdao
    ·2023-04-05
    TOP
    Too many data to look at. Trading should not be too complicated else its will be extremely confusing.
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    • glitzy
      theoretical forecate is necessary, but other complexity is nonsense
      2023-04-05
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    • wubbie
      it is most annoyed fact is not many data, but many fake, hype and unrealistic data in it
      2023-04-05
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  • GoodLife99
    ·2023-04-04
    TOP
    Will look for net profit margin - profitability ratio, revenue growth rate, leverage
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    • GoodLife99Replying toShyon
      thankssssss!
      2023-04-05
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    • Shyon
      Nice
      2023-04-05
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  • Bons
    ·2023-04-07
    TOP
    the basic standard of a good company is that it has to be profitable and has a good flow of cash. I'll take note of its Gross margin and net margin. Gross margin since it covers the company business activities and Net margin due to the fact that company also needs to cover tax and other financial duty.
    as for the cash flow, I prefer to look forward to a positive cash flow and there's no a large amount of unpaid loan to some creditors or an unpaid receivable account that is owed by the customers (usually marked by the delayed payment of 90 days or more).
    how's yours @Viv22 @LMSunshine @KYHBKO @Tigress02 @Universe宇宙 @kungpao @wine18 @cindyft @Xian789 @MTok
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  • Kunzi
    ·2023-04-10

    Got.to.love $Broadcom(AVGO)$  

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    • Elsa Heng
      [What]
      2023-04-11
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    • Ray Kwan
      [呆住]
      2023-04-11
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    • Kok Weng
      [Cool]
      2023-04-11
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  • intheloop
    ·2023-04-05
    It really depends on the investment horizon and strategies. Common metics that i use include earning and revenue, net profit margin, return on equity, not forgetting to check on their 3-5 years' past performance to ensure the quality of earning. Next check on positive cash flow and debt management for business sustainability  such as current/future financial health - debt to equity ratio & cash flow. Last is to gauge the share value based on P/E ratio vs peers. A timely survey to remind me to use these metics in a consistent manner especially when my heart rule over the head with certain shares
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  • Bons
    ·2023-06-11
    GPM and EBITDA are good, but you need more
    1. ROIC to compare the profit on your invested capital
    2. DER to see the structure of the leverage of the company and the weight of the loan payment to its operational profit
    3. cashflow, mainly CFO, to see whether the sales generate enough fresh fund for operational, instead becoming bad receivable which is never paid by the buyer.

    I'm just searching for all of these factors of the company and its peers.

    it's relatively easy to see whether the company is profitable or not. these factors can reveals it. as for to judge the potential of being profitable in the future, it's quite difficult. however, one thing that covid era has shown is the influx of fund from angel investor(s) due to the fact that analysts from the angle investors can see its potential. at least, these fresh funds can ensure the operationsl of the company for some time so that your capital won't lost in that time window.

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  • Lord_Kuberan
    ·2023-04-10
    事实上,毛利润和EBITDA足以评估,因为这两个指标将扣除公司的运营费用和营销。你只是对利润感兴趣。


    最好的计算方法是税前利润率。
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  • Natesh Iyer
    ·2023-04-08
    The depreciation and amortization are tools used tk manage your tax payout, so finally earnings is the best indicator. The other indicators include book value per share or price to book ratio is the value is very high mean the stock will become highly speculative. Price to earnings to growth is another indicator that the company still have growth left in it and finally eps growth and roic growth. Check the ceo letterhead to shareholder and the salary increase for all the top management vis a vis the company performance
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  • tigernoob
    ·2023-04-06
    cash is king.

    look at their income statement, balance sheet and cash flow statement.

    pe ratio,  debt to equity ratios are important.

    alot depends on where you are a value investor. a company can look cheap on a pe ratio but there may be fundamental issues with the company.

    why I think looking at the financial statements are more important than ratios.

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  • Zarkness
    ·2023-04-05
    As an investor , i use the least money to buy the most . Means to buy new asset type . Potential profit means its not … so many times i lose money … 😌😌😅
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  • airui
    ·2023-04-04
    usually i look at cash flow first, ROE, ROC,ROA depending on biz type
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    • WernerBilly
      Brilliant. I don't know much about these
      2023-04-05
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  • Loloq
    ·2023-04-13
    If I see there's rising increase of profit and stability .. I have the confidence in the trade. Still need guidelines and learning 😊🙏
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  • Tan Chung Hong
    ·2023-04-12
    除了上述的条件,我绝対会参考平均每日的交易量是否非常多寡!!
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  • Upswing118
    ·2023-04-07
    roe,D/E和现金流是我考虑的前三个因素。到目前为止一切顺利。如果该公司对自身进行再投资,那就更好了(酷)
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  • KYHBKO
    ·2023-04-07
    if I have limited time, I would look out for growing revenue, net income (after tax), and free cash flow.
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